Prior kennel structures include various types of flooring, cages and drainage systems. However, it has been found that there is a need for a modular kennel system that can be efficiently assembled and disassembled. There is also a need for a kennel floor unit that is constructed of a durable and lightweight moldable material. There is a need for a floor unit that is easy to maintain. Further, there is a need for a kennel system having lower and upper levels in which the floor assembly includes structural support walls for the upper level. The present invention provides a kennel system that satisfies these and other needs.